Predicting cryptocurrency exchange development is always intriguing since it is growing both in tandem with and in opposition to the traditional financial system.
On the one hand, the introduction of crypto user identification requirements, the growing interest in government digital currencies, PayPal's crypto service, and Facebook's upcoming launch of the stable coin Diem (ex-Libra), among other events, confirm that digital assets are finally becoming more understandable and mainstream.
It's the same story for a variety of monetary types, including Bitcoin, the most important crypto on the planet. Its astronomical rise in value in 2021 may be traced back to October 2020, therefore the occurrence we see during this focus in 2021 is merely a foretaste of something bigger.
- Trend One: Crypto will see tax regulation
The key topic for the foreseeable future is cryptocurrency taxation. Crypto taxation is still a nebulous concept today, a fantasy far off from reality. Crypto taxes are not yet common, and while they may be unwelcoming to some, they have begun to arise in some nations as those markets grow and governments perceive the possibilities for income generation outweighing the risks of crypto.
However, the adoption of knowing your customer (KYC) processes, the development of protocols that allow for transaction tracking, and the passage of legislation on digital assets all signal that things are changing, and changing faster than some might expect.
We're also seeing monitoring technologies being actively created, as well as governments exchanging information on cryptocurrency exchange development platform owners and transactions. As a result, the first bitcoin tax evasion lawsuits are likely to be filed in 2021.
- “Silent crypto harbours” are heading
The introduction of crypto taxes will boost the appeal of countries that will oppose this practice and allow users to lawfully minimize the expenses of having digital assets since there is an anti-trend for every trend. Simply put, the so-called "offshore crypto havens" will grow in popularity. Countries with well-developed IT and financial markets, such as Singapore, Korea, Japan, and, of course, Switzerland, will most likely play this role.
- Models for risk assessment will improve.
Against the backdrop of bitcoin's rising value, there is a pressing need for the development of an outstanding risk assessment model, as it becomes increasingly difficult for clients to objectively assess the potential outcomes of crypto investments without succumbing to the rush. Administrations who provide a working system, rather than just "computerized fortune-telling on coffee beans," will want to quickly win the hearts, minds, and wallets of both novices and seasoned members of the digital currency market.
- The cost of transactions will change
This trend is intriguing since it will have multiple directions. Because of technological advancements, Ether transactions will get cheaper, whereas Bitcoin transactions will continue to climb in price.
Changes in the cost of operations may have an impact on e-commerce players' interest in cryptocurrencies exchange development. The fact that bitcoin is significantly cheaper to deal with than fiat money attracts internet merchants nowadays. The speed with which cryptocurrency spreads as a payment method will be mainly determined by whether it can preserve this advantage in the long run.
- 5G will revolutionize and transform a lot of things.
It has been observed that people are overlooking the 5G standard which will bring revolution in data transfer. Its adoption will result in the introduction of new concepts and types of services, as well as changes in how mining is built, what Defi applications are being developed, and other factors.
For example, when investment decisions are made by computers, 5G can drastically alter the high-frequency trading market, especially with the ultra-low latency that 5G provides.
Final Thoughts
These are the top 5 Crypto Trends for 2021 & beyond. Controllers, traditional monetary organizations, and crypto businesses are increasingly collaborating to capitalize on the advantages that crypto innovation has brought to the world.
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